Expedia and Marriott Finally Sign a New Contract
Skift Take
For pundits looking for a headline that Marriott won reduced commissions from Expedia, the reality is likely far more complex than that, and it might take an audit over the next few years to truly sort out the revenue impact. The new deal has Marriott properties remaining for sale on Expedia brands, as the two companies march off into the sunset maintaining their rough-and-tumble, if symbiotic relationship.
Marriott and Expedia Group have finally signed a new multiyear contract, their first new agreement since Marriott bought Starwood for $13 billion in 2016, and won bragging rights as the largest hotel chain in the world.
In a joint statement sent to Skift Thursday, the two companies said they “have reached mutually beneficial economic terms that advance each company’s strategic objectives.”
A proverbial "win-win," as the marketing gurus would have you believe.
The existing Expedia-Marriott contract had expired in November, but the two parties extended it during months-long negotiations. The entire hotel industry and online travel arena were watching the progress of the talks to glean whether there were any disruptive industry dynamics would play into the outcome.
In addition to maintaining their distribution relationship, which keeps Marriott International’s rooms and more than a couple-dozen brands for sale on Expedia.com, Hotels.com and other Expedia Group brands, the two parties to the negotiations said Expedia will get an expanded role in powering flights and hotel packages on Marriott Vacations, a partnership that dates to the summer of 2016.
In addition, the joint statement said Marriott will use Expedia technology “for an innovative distribution arrangement beyond transient retail bookings,” an initiative that is slated to kick in during the fourth quarter.
While it’s unclear precisely what the new technology plan
